[Author Prev][Author Next][Thread Prev][Thread Next][Author Index][Thread Index]
Ads on the net
I'm an economics student, so forgive me if I sound like an economist:
Personally, I don't mind seeing some ads on the net, but since the net ads
is free to the dealers, there are great potential to be abused. Using the
normal cost/benefit analysis, I see that benefit to allowing the ads are:
(1) get more info about Audi's prices and availability;
(2) (possibly) get more contact with the dealers and info about new models.
The costs to the netters are:
(1) net being overwholed by ads;
(2) since dealers getting free ads, they have a greater market for free,
as a result, they may able to charge higher prices. This is like an
auction, more bidders, higher prices.
(3) dealer may purposefully advertising a higher price regularly, so the
public opinion about Audi's price may be influenced.
The benefit to the dealers:
(1) free ads;
The cost to the dealers:
(1) none (or minuscule).
Ideally, we wish to set some rules (or contract) with the dealers. But
as Dan point out, there is no enforcement mechanism. Once dealers in,
do we have any way to drive them out? If there is no policemen, there
is no speed limits!
Therefore, my vote is NO ads.
Minven Wang